Published: 08/10/2020 By Sarah SchendelIn a recent statement, Airbnb has announced it will now be sharing data with HM Revenue and Customs regarding the income received by those who use/have used, this platform as a means to generate extra income, through property rental.
By way of a brief background, Airbnb hosting has become extremely popular in recent years, with an increasing number of landlords using Airbnb as an easy platform to let their property, whether it’s their main home, or a buy to let property.
Having seen a surge in popularity, renting a property on Airbnb has been seen as a lucrative way to potentially enhance rental income opportunities, however HMRC believe many landlords may not be fully aware of their obligations and responsibilities to correctly disclose this source of income, to the appropriate tax authorities.
With Airbnb now making this information available to HMRC, we suspect that in turn HMRC shall use this data to launch a new wave of tax enquiries, resulting in many homeowners and landlords, who use Airbnb, becoming subject to a formal tax enquiry. This may result in an individual facing retrospective tax liabilities, and penalties for non-disclosure.
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